• Sale of property and repatriation of sale proceeds to USA

I have an OCI card. I am a citizen of USA. I purchased a property from the inheritance from my parents. They are both deceased. I want to sell the property and moved the process to USA.

— can I sell the property?
— can I get a waiver for the TDS?
— can I repatriate to USA?
— is this taxable in the USA?
Asked 3 years ago in Property Law
Religion: Hindu

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5 Answers

You can sell the property inherited by you 

 

2) 

  • To seek relief in the Withholding Tax Rates, NRI/Foreign Citizen can apply for Lower TDS Certificate (TDS Exemption Certificate) with the Jurisdictional Income Tax Authority.
  • This application is submitted in Form 13 of Income Tax Forms.
  • NRI Lower TDS Certificate is an online application process (wef Oct 25, 2018)
  • NRI applicant need to prepare and arrange various supporting documents for this Lower TDS Certificate. All the documents are submitted with Form 13 Application online.

3) the amount of sale proceeds must be credited to NRO account and only then up to USD 1 million per financial year can be repatriated. Such repatriation is allowed for only two properties.


Ajay Sethi
Advocate, Mumbai
99784 Answers
8145 Consultations

If the property is on your name then there there is no legal embargo in selling the property . 

you do not require RBI's prior approval to acquire and transfer immovable property in India.

You don't need any aadhar card or proof of residence for selling any property in India. Your passport, Pan card and OCI card will suffice. - Hence, these two documents are enough to execute the sale deed for transferring the property in the name of buyer.

TDS applicable will be 33.99% irrespective of tax slab of the NRI.

It is mandatory for the buyer to deduct tax at source with regard to the long term capital gains tax.

Buyer will deposit TDS with Income Tax Department.

Insofar as tax payable in USA is concerned; The income tax filing is usually based on his/her global income and is subject to the conditions of DTAA (Double Tax Avoidance Agreement).

A Non-Resident Indian (NRI) / Person of Indian Origin (PIO) may remit an amount, not exceeding US $ 1,000,000 (US Dollar One million only) per financial year out of the balances held in NRO accounts / sale proceeds of assets by way of purchase / the assets in India acquired by him by way of inheritance / legacy/ out of Rupee funds. This is subject to production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter, and a tax clearance / no objection certificate from the Income Tax Authority for the remittance. Remittances exceeding US $ 1,000,000 (US Dollar One million only) in any financial year requires prior permission of the Reserve Bank.

T Kalaiselvan
Advocate, Vellore
89986 Answers
2493 Consultations

1. Yes, you can sell the property to any prospective buyer.

2.  You can apply for Lower TDS Certificate to the jurisdictional Income Tax Officer.

3.   Yes, you can repatriate the amount to USA.

4.   Since the sale proceeds are taxed here, I think it's not taxable in the USA as it results in double taxation. 

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

Dear client Yes. OCI Cardholder is at parity with Non-Resident Indians (NRIs) towards property transactions. As per FEMA, RBI frames the Directions / Regulations concerning the Acquisition and Transfer of immovable property in India.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

Yes you can sell the property applicable TDS is payable yes you can repatriate. No it's not taxable in both countries 

Prashant Nayak
Advocate, Mumbai
34520 Answers
249 Consultations

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